Organic Milk Dynamics and the Future of Organic Milk

Mike Hughlett from the Balitimore Sun has published an interesting article on organic milk that peeks behind the curtain to reveal some of the economic and regulatory dynamics affecting organic milk production, supply, and pricing. An interesting and quick read.

 

Form the article:

Neighboring dairy farmers in Columbus, Wis., thought Jim Miller and his family had embarked on a path to bankruptcy when they decided to produce organic milk. How could you run a farm without chemicals and make milk for a market that barely existed?

That was over a decade ago, and the neighbors turned out to be wrong. Organic became the sweet spot of the milk business, providing farmers such as Miller with more-stable prices, and often more profits, than conventional dairy operations see.

But over the past year, the milk business has been turned on its head, with many organic farmers getting squeezed as never before and conventional dairy farmers enjoying the best of times. Meanwhile, consumers have seen prices for conventional milk post double-digit increases but barely budge for the organic stuff.

That’s beginning to change . . . .

Read the entire article at http://www.baltimoresun.com/business/bal-bz.milk03may03,0,825511.story